Form revised April 10, 2006
FISCAL NOTE FOR NON-CAPITAL PROJECTS
Department: |
Contact Person/Phone: |
DOF Analyst/Phone: |
Executive Administration |
Denise Movius/4-9259 |
George Emerson/3-9110 |
Legislation Title: |
AN ORDINANCE relating to the licensing and regulation of nightlife establishments; establishing a Nightlife Premises Advisory Board; and adding a new Chapter 6.280 to the Seattle Municipal Code.
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· Summary of the Legislation:
The proposed legislation establishes regulations for nightlife establishments in Seattle that serve liquor and have an occupant density equal to or in excess of one person per seven square feet between 10:00 p.m. and 6:00 a.m., as defined in the ordinance. A new regulatory chapter will be added to the Seattle Municipal Code, codifying the requirement for businesses to obtain an annual regulatory license to operate a nightlife premises. New SMC sections establish the license fees, as well as the conditions and procedures under which the City may grant, deny, revoke, or suspend a regulatory license. The ordinance also establishes a process for administrative review of City actions, and penalties for businesses that operate without a requisite license.
To obtain or renew a nightlife premises license, businesses will be required to comply with reasonable operating standards, as set forth in the new SMC provisions. These standards pertain to businesses taking reasonable measures to prevent violence, liquor violations, excessive noise, and criminal activity on nightlife premises and public areas impacted by business operations. License applications will address these issues, and license applications will be circulated among various City departments and other agencies that regulate safety and health, to determine if the proposed business operation complies with applicable laws.
The legislation establishes a Nightlife Premises Advisory Board, appointed by the Mayor and staffed by the Office of Economic Development. This board will be charged with implementing the nightlife premises regulatory program, develop effective and responsible business practices for the operation of nightlife premises, and assist nightlife premises licensees or applicants with assistance in complying with regulatory requirements.
· Background:
Many Seattle neighborhoods, including downtown, have experienced significant growth in the number of residents, businesses and late-night entertainment establishments. Conflicts arise between club owners and patrons, and nearby residents and other businesses, including noise violations, public disturbances, criminal activity both on-site and in public areas nearby, and liquor control law violations.
Acknowledging that a vibrant and safe nightlife can contribute to the city’s cultural and economic vitality and diversity, and that early intervention can prevent many issues from becoming chronic problems, the Mayor’s Office formed the Nightlife Task Force in October 2005. The Task Force, composed of club owners, neighborhood businesses and residents, advises the Mayor on coordinating, planning and regulating nightlife establishments throughout the city, while balancing the needs of a vibrant and healthy night-time entertainment industry with the needs of residents and other businesses who share the same neighborhoods. The Task Force has assisted the City in framing the provisions of this ordinance.
Through separate legislation, the Executive will propose appropriations and position authority for two new positions: a regulatory inspector in the Department of Executive Administration, and a position housed in the Office for Economic Development which will be responsible for assisting businesses with compliance with the regulatory requirements.
· Please check one of the following:
____ This legislation does not have any financial implications. (Stop here and delete the remainder of this document prior to saving and printing.)
_X__ This legislation has financial implications. (Please complete all relevant sections that follow.)
Appropriations: This table should reflect appropriations that are a direct result of this legislation. In the event that the project/ programs associated with this ordinance have appropriations that were, or will be, received because of previous or future legislation or budget actions, please provide details in the Notes section below.
Fund Name and Number |
Department |
Budget Control Level* |
2006 Appropriation |
2007 Anticipated Appropriation |
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TOTAL |
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*See budget book to obtain the appropriate Budget Control Level for your department.
Notes: There are no appropriations associated with this legislation.
Anticipated Revenue/Reimbursement: Resulting From This Legislation: This table should reflect revenues/reimbursements that are a direct result of this legislation. In the event that the issues/projects associated with this ordinance/resolution have revenues or reimbursements that were, or will be, received because of previous or future legislation or budget actions, please provide details in the Notes section below the table.
Fund Name and Number |
Department |
Revenue Source |
2006 Revenue |
2007 Revenue |
General Fund 00100 |
Executive Administration |
Nightlife premise license application fee |
$0 |
$105,000
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General Fund 00100 |
Executive Administration |
Nightlife premise annual license fee |
$0 |
$ 90,000
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TOTAL |
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0 |
$195,000 |
Notes: The legislation provides for an original application fee for new nightlife premises license of $350 in 2007. Additionally, applicants will pay for the first annual license, which has a fee of $300. The conservative estimate of nightlife establishments subject to the new regulations is 300, for estimated 2007 revenue of $195,000. Thereafter, the annual license fee for these businesses will be $300, for approximately $90,000 in annual revenues.
Total Regular Positions Created Or Abrogated Through This Legislation, Including FTE Impact: This table should only reflect the actual number of positions created by this legislation In the event that positions have been, or will be, created as a result of previous or future legislation or budget actions, please provide details in the Notes section below the table.
Position Title and Department* |
Fund Name |
Fund Number |
Part-Time/ Full Time |
2006 Positions |
2006 FTE |
2007 Positions** |
2007 FTE** |
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TOTAL |
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* List each position separately
** 2007 positions and FTE are total 2007 position changes resulting from this legislation, not incremental changes. Therefore, under 2007, please be sure to include any continuing positions from 2006
Notes: There are no position changes associated with this legislation.
· Do positions sunset in the future? (If yes, identify sunset date): Not applicable.
Spending/Cash Flow: This table should be completed only in those cases where part or all of the funds authorized by this legislation will be spent in a different year than when they were appropriated (e.g., as in the case of certain grants and capital projects). Details surrounding spending that will occur in future years should be provided in the Notes section below the table.
Fund Name and Number |
Department |
Budget Control Level* |
2006 Expenditures |
2007 Anticipated Expenditures |
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TOTAL |
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* See budget book to obtain the appropriate Budget Control Level for your department.
Notes: Not applicable.
· What is the financial cost of not implementing the legislation? This legislation is intended to ensure that nightlife establishments are in compliance with the City’s code concerning safety, noise, violence, alcohol service, litter and other problems. The financial cost of not implementing the legislation is not known.
· What are the possible alternatives to the legislation that could achieve the same or similar objectives?
Add additional police to help provide oversight over the nightlife establishments. This alternative would most likely cost more money than providing incentives for nightlife establishments to comply with the applicable codes.
· Is the legislation subject to public hearing requirements:
No special public hearing requirements.
· Other Issues: None.
Please list attachments to the fiscal note below: None.